What I think you are looking for is, that LLC protections don't cover negligence....which is starting to come into law. Look at the health and safety at work act.

[–] deadbeef79000 2 points 1 year ago (1 children)

Why are the insurance requirements high? Because it's risky. Cafés survive only at the whim of very ficklest of customers.

[–] absGeekNZ 3 points 1 year ago (1 children)

But with unlimited liability, if your cafe fails, you lose the house and future earnings can be on the line also.

LLC is for financial protection, not for criminal and now it also doesn't cover health and safety negligence.

[–] deadbeef79000 0 points 1 year ago* (last edited 1 year ago)

But with unlimited liability, if your cafe fails, you lose the house

That's the point.

LLC limits that liability of the directors and only the directors. The liabilities are still paid for by someone. LLC just means that someone is someone else: probably supplies and employees who don't get paid.

If you can't afford to self insure your cafe, don't start a cafe.

I can't afford to start an investment bank, so I don't try.